0 3 0 2 0 ·---..ING TELEGRAM Ilp~rtment of Sta.ft INDICATE: D cower D CHARGE i:o UNCLA$SIF nm 57 Orfg!n ACTION: .lmlmbassy MAmm 2884 CCM 40 PH '6~ Infos L Em a sy1 s A"""781 of April 17~ 196.3 Eu'R SCI E N. S. 8a'fa1Ul8.b Visit p concern Following ~omments/rev~ed Spanish text of Savannah bilateral. 1. We note Spanish draft omits standard provision on maintenance and servit"Jing (see Arti<'Jle VII Gaeek Agreement) • Since provision is uaeful to bot}?. oowitries9 ws wonder whether .-.1ssion was intentional. A~lvfY 2. U.s. not J"G~at not authorized assume civil liability or 8%11' e>ther NAVY , AEG .. liability for dam.age ~~..,.., ...~·tg from nuolaar incident involYing the Savannaho JUS WHB Stata:te governing terms UoSo may offer tor Savannah indemnification arrange­ments (Atondc Energy Act of 19549 as ~mended). aathorizes pa,-ment when there is liabilit7 under local law for consequences of a naclear incident itivolving th.e Savanna.ho The aggregate indemnity o.t .~f500,0009000 is available to coyer all legal liability resulting from such a nuclear incident regardless of where it OCCllrff"" UoS. law doos not authorize tfoS• to establish special rules of liability by meaM ot the agreeD1Gnt. If local law tbes liability solely and strictly on Savannah op;rat " ~.. U.S. can meet claims on that basis. We read ans proposal as an attempt to establish special substantive rllles for Savannah which in abserw of the agreement would not prevail in a Draftfld by~ AIC/GC = Mr. Pender AEC/.DIA = Mr. hl.l.f)rton SCI = Mr. Price /fl' ~l """ . 0 Ma·urer ( 1 ~aft) G/PM tEi4oo&:.'?t0~ THIS COPY rs j,/' ' . VlllLASS~ UNLES PROHIBITED "UNCLASSIFIED" ~~~MDS-322 Page 2 of telegram to,_-AA..mmLJ!iEmmbabaJs~s~y~MAia.uDRtt.ID.LU.________________ _ UNCIASSIFIED The two paragraphs of Article IX sho11ld be designated (a) a (b) • Second ~ paragraph I£11£HJ'i~iA~agrapbiot Article X of Greek Agreement. The intent of that language was clarified in separate ~tters, particularl7 i..Jith respect to the fact that total awn of indemnification to be negotiated between the two governmerls would be payable from and limited to tbe $500 million covered in first par~~raph of the article. An e.J